Royalty Base/SSPPU

Fall 2017

The Smallest Salable Patent-Practicing Unit: Observations on Its Origins, Development, and Future

The smallest salable patent-practicing unit (SSPPU) concept has often been used to argue that the royalties for a portfolio of SEPs should be limited to the cost of a key component in the implementation of the standard. The paper “The Smallest Salable Patent-Practicing Unit: Observations on Its...Read More

April 26, 2017
Petit, Nicolas

The Smallest Salable Patent-Practicing Unit Experiment, General Purpose Technologies And The Coase Theorem

In the past years, some Standard-Setting Organizations active in wireless communications have experimented new technology pricing principles which upset this basic economic wisdom. One of those changes is the “SSPPU” experiment. SSPPU wants to prevent upstream technology developers to claim all...Read More

Putnam, Jonathan and Williams, Tim

The Smallest Salable Patent-Practicing Unit (SSPPU): Theory and Evidence

Jonathan Putnam and Tim Williams’ paper is the first to offer theoretical and empirical evidence for showing that the adoption of the SSPPU rule as a royalty base conflicts with fundamental economic principles and industry practices. Using economic theory, the authors establish that “the SSPPU...Read More

Padilla, Jorge and Wong-Ervin, Koren

Portfolio Licensing at the End-User Device Level: Analyzing Refusals to License FRAND-Assured Standard-Essential Patents at the Component Level

This article shows through a simple model, that due to the FRAND commitment and because most FRAND-assured SEP holders do not assert their patents at the component level, there is likely no foreclosure or exclusionary conduct or otherwise harm to competition.Read More

September 2016
Kattan, Joseph and Ordover, Janusz and Shampine, Allan

FRAND and the Smallest Saleable Unit

July 2015
Stark, Richard

Debunking the Smallest Salable Unit Theory

Manufacturers of devices such as smartphones need licenses to intellectual property held by innovators. Naturally, as profit-maximizing entities, they prefer to acquire the licenses they need at the lowest possible cost—that is, for the smallest royalty payments, or even royalty free. To achieve...Read More

June 2015
Sidak, Gregory

FRAND in India: The Delhi High Court’s emerging jurisprudence on royalties for standard-essential patents

This article examines six FRAND proceedings to date in India and their potential effects on holders of telecommunications SEP portfolios in India.Read More